The price of the Smurfs: Apple refunds 8-year-old's £4,000 bill for in-app purchases

Apple has agreed to write off a father's massive bill for in-app purchases
made by his daughter, who 'did not realise she was using real money' in games
such as Campus Life, My Horse, Hay Day and Smurfs' Village

Apple has reportedly agreed to reimburse a British man for the £4,000-worth of in-app purchases his daughter made over the course of around five months.

Eight-year-old Lily Neale from Somerset racked up the massive bill playing games such as Campus Life, My Horse, Hay Day and Smurfs' Village on her father’s iPad. At one stage she reportedly spent £2,000 in six days, buying in-game extras such as jewels, coins and upgrades without realising she was using real money.

Although Apple emailed her father, Lee Neale, informing him of each purchase, the notifications went to his work address, which he was unable to access because he had been seconded to another company. He only found out what was going on when his bank froze his account.

At first Apple refused to wave the bill stating “all purchases made on the iTunes store are final”, leaving Lee Neale with the prospect of selling his car and two motorbikes to pay off his debts. However, Apple has now agreed to cover the cost.

“Apple called me to say they will be refunding the money I have lost and apologised for closing my case so early,” Lee Neale told The Sun.

“Lily had used the password she’d seen me enter to download the games. She is only eight years old. Even when I sat her down and explained that what she was doing had cost dad money, I still don’t think she really understood.”

He stated that in-app purchases are “terrible” and people need to be made aware of the risks, adding that Apple's final decision to refund the money had "really saved my bacon".

This is not the first time Apple has refunded a bill for in-app purchases. Earlier this year the company reimbursed a family after their five-year-old son ran up a £1,700 bill on his parents' iPad in just ten minutes.

At the time, Apple said it was vital for people to keep their pass code, (designed to stop unauthorised electronic purchases on its products), safe and said software was available to prevent children from using the iTunes store even if they have the password.

In April, however, the Office of Fair Trading launched an investigation into a internet and app-based games, following concerns young people are falling foul of “aggressive” tactics introduced to get them to pay for added extras.

The OFT action will look into whether games include “direct exhortations” to children – a strong encouragement to make a purchase – which would be illegal under consumer protection legislation. A breach carries a maximum £5,000 fine or two years’ prison.